DCM Shriram Q4 PAT climbs 15% YoY

DCM Shriram reported 15.1% rise in consolidated net profit to Rs 231.72 crore on 16.7% increase in net sales to Rs 2174.92 crore in Q4 FY21 over Q4 FY20.

Vinyl business revenues climbed 109% at Rs 272 crore, driven by PVC prices up 70% and carbide prices up 59%. Overall sugar revenues up 22% YoY at Rs 1,021 crore while chemicals business revenues remained flat at Rs 355 crore in Q4 FY21. Fenesta business revenues were up 40% YoY at Rs 118 crore led by both retail and projects segment. Retail order booking was up 54% YoY. Fertilizers revenues, however, declined by 28.3% to Rs 215 crore in Q4 FY21 from Rs 300 crore in Q4 FY20.

Profit before tax in the fourth quarter was at Rs 308.50 crore, up 24.4% from Rs 247.91 crore in the same period last year.

Net debt as on 31 March 2021 stood at Rs 180 crore as compared to Rs 1,623 crore as on 31 March 2020. The reduction in debt was led by lower sugar inventory and significantly lower fertilizer subsidy outstanding. Judicious approach to capex and working capital across businesses also led to lower net debt.

DCM Shriram reported 6.1% fall in consolidated net profit to Rs 673.28 crore on 7.6% rise in net sales to Rs 8273.89 crore in the year ended 31 March 2021 over the year ended 31 March 2020.

In a joint statement, Ajay Shriram, chairman & senior managing director, and Vikram Shriram, vice chairman & managing director, said: "FY'21 has been a year of disruptions caused by Covid-19. The Company adapted well to these disruptions and delivered a stable operating and financial performance. Almost all our businesses operated at normal levels in the second half of the year.

Chemicals business which faced significant challenges for most part of the year, witnessed increased traction by end of Q4 FY'21. The 120 MW Power plant at Bharuch is expected to be commissioned in Q4 FY'22, which will add to cost competitiveness of Chemicals business.

We have over last 2-3 years invested in Distillery capacities to produce Ethanol. This has provided stability to Sugar Business. Government policies also have played a critical role in giving stability to the industry, we expect the Government to continue the policy framework in the interest of growth of Industry and farmers. Capital employed in our fertilizer business has come down significantly with release of subsidy by the Government in Q4 FY'21 under Atma Nirbhar Bharat Package."

DCM Shriram is a diversified company with presence agri-rural business, chlor-vinyl business and value added business (fenesta building systems- UPVC windows & doors).

The scrip fell 2.63% to currently trade at Rs 710 on the BSE.

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